Private equity fund manager Aureos Capital (www.aureos.com) has signed up for a UN-backed globally recognized initiative to promote responsible investment. Aureos specializes in investing into small to medium-sized businesses in emerging markets and it recently signed up to the United Nations Principles for Responsible Investment (UNPRI) initiative.
UNPRI (www.unpri.org) was established in 2005 by 20 of the world’s largest institutional investors. There are currently over 700 institutional investors, investment managers and professional service partners who have signed up to the Principles. It reflects the core values of investors who take a long-term view to the realisation of value from investments. This makes it particularly suitable for Private Equity investors, whose investment portfolio horizons are generally medium to long term.
Since its establishment in 2001, Aureos has increased its funds under management to over US$ 1.2 billion and extended its geographical footprint to over 50 emerging markets covering Asia, Africa and Latin America, by establishing 16 regional private equity funds. In a company announcement on Tuesday (23 March), it said it has long been committed to sustainable investing.
Aureos uses its network of professionals to ensure Environmental, Social and Governance (ESG) factors are integrated and it has extensive experience investing in Latin America, Africa, Asia and the Pacific to enhance the long-term value of portfolio companies.
Sev Vettivetpillai, Chief Executive Officer of Aureos Advisers Ltd, comments: “Our proactive approach to the consideration of ESG in portfolio companies and the communities in which they operate aligns commercial objectives with lasting development impact. We are successful in our approach through our partnership with our investors, employees, entrepreneurs and the people in the regions in which we operate.”
“Adhering to the principles of responsible investing is all the more important in emerging markets where there is often less regulation governing the impact of companies on the environment, or less enforced corporate governance standards.”
“We believe there is a positive correlation between the rigorous application of high ESG standards and financial returns for investors. It is a matter of mitigating investment risk. We are thrilled that these principles are now promoted by an institution with the global standing of the United Nations.”
The UNPRI is currently involved in a two-year promotional project in emerging markets. Aureos plans to spearhead a new drive promoting UNPRI’s credentials and addressing the G20’s recent commitment to financing small and medium-sized businesses in emerging markets.
Sev Vettivetpillai says: “Investing in SMEs in emerging markets is our key activity so we are delighted to be working with the UN to promote this.”
Principles include:
• Incorporating environmental, social, and corporate governance (ESG) issues into investment analysis and decision-making processes
• Being active owners and incorporating ESG issues into ownership policies and practices
• Seeking appropriate disclosure on ESG issues by the entities in which are invested
• Promoting acceptance and implementation of the principles within the investment industry
• Working together to enhance effectiveness in implementing the principles
• Reporting on activities and progress towards implementing the principles.